Assume a merchandising companys estimated sales for January, February, and March are $108,000, $128,000, and $118,000, respectively. Its cost of goods sold is always 60% of its sales. The company always maintains ending merchandise inventory equal to 25% of next months cost of goods sold. It pays for 30% of its merchandise purchases in the month of the purchase and the remaining 70% in the subsequent month. What is the accounts payable balance at the end of February?

Multiple Choice

• $47,460

• $22,590

• $48,540

• $52,710